Millions readers who follow European soccer, the progress of democratic socialism, or international tax policies may be interested in Jonathan Last’s article in the Weekly Standard this week about how Gordon Brown’s recent tax hike – from 40% to 50% on the top tax bracket – is decimating the English Premier League. (And yes, I mean that Weekly Standard – the one edited by Bill Kristol, the one so many love to hate.)
According to Last and others (like Arsenal manager Arsene Wenger), the Premier League’s inability to keep or attract players like Cristiano Ronaldo (who left Manchester United this transfer season for Real Madrid for a record 80 million pounds), the Brazilian striker Kaka (who spurned a 100 million pound offer from Manchester City to go to Real Madrid for less), Karim Benzima, Franck Ribery, Samuel Eto’o, David Villa, and Jermaine Pennant can all be traced to England’s new 50% income tax and the falling value of the pound. That and Spain’s 2005 “Beckham Law” that allows high-earning “foreign executives” a special tax rate of only 24% rather than 43%, its usual top-bracket rate. The Spanish law is so named because David Beckham was the first foreign national to be given this status – and because the law was backdated to 2003, the year he joined Real Madrid from Manchester United.